annual report · the collection rate was 98.73% (european average) or 1.73% higher than the plan....
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2010ANNUAL REPORT
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JP ELEKTROPRIVREDA HZ HB d.d MostarMile Budaka 106a
88000 Mostar Bosnia and Herzegovina
Tel.: +387 36 335 700 Fax: +387 36 335 777
[email protected] www.ephzhb.ba
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cONTENTS
GENERAL MANAGER’S REPORT .............................4
cOMPANY PROFILE ...........................................6MissionVisionStrategy
QUALITY MANAGEMENT POLIcY ............................82010 General Data
ORGANIZATION cHART .................................... 10
GOVERNING BODIES ....................................... 12Shareholders’ AssemblySupervisory BoardAudit BoardManagement Board
BASIc LEGAL DATA ........................................ 14Home Trade Activities of CompanyForeign Trade Activities of CompanyStructure of Company Shareholders in 2010Stock Trade – SASEShares in Related Legal EntitiesHuman Resources
cOMPANY’S PERFORMANcE ............................... 19Profit and Loss AccountBalance SheetIndependent Auditors’ ReportMap of Power System in BiH in 2010
POWER GENERATION DIVISION ........................... 29HPP RamaHPP MostarHPP Peć MliniPSPP ČapljinaHPP Jajce IHPP Jajce IIHPP Mostarsko Blato
cONSTRUcTION OF GENERATING PLANTS ................ 41
PROJEcT AcTIVITIES ........................................ 42Wind FarmsHydro Power PlantsFossil Energy ProjectOther ActivitiesMap of Existing and Planned Generation Facilities
POWER DISTRIBUTION DIVISION ......................... 47Distribution FacilitiesDistribution Facilities Financed out of EIB Loan in 2010
POWER SUPPLY DIVISION ................................. 53Payment CollectionRelations with Customers
ENVIRONMENTAL PROTEcTION POLIcY .................. 58Hydrometeorological SystemInformation CenterEnvironmental Protection Activities
cONcLUSION ................................................ 62Management Board’s Report Supervisory Board’s Evaluation of Company’s Performance Assembly’s Evaluation of Performance
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GENERAL MANAGER’S REPORT
In 2010, performance of Elektroprivreda Hr-vatske zajednice Herceg Bosne, d.d. Mostar was
good. In spite of difficult circumstances caused by the
crisis, performance of all organizational parts was very good due to good coordination of all officials and rational
use of the available resources.Compared with the previous year, power generation in-
creased by 34%. The Company operates seven hydro power plants. Thanks to good operating conditions and favourable hy-
drological circumstances, the total power generation in 2010 was 2,604.67 GWh.The gross income (mainly from sales of electricity and services) was BAM 382,991,119 or 23% higher than in the
previous year. The Company operated at a profit of BAM 40,746,515. The amount of BAM 59,390,013 was invested in various
projects in all organizational parts.Continuous investment in the distribution network contributed to loss reduction by 1.3% at all distribution voltage levels.
The collection rate was 98.73% (European average) or 1.73% higher than the plan. At the same time we worked on safe and quality supply to all customers.The newly constructed HPP Mostarsko Blato was put into operation in 2010. This multipurpose and complex power-generating
plant - civil structure worth BAM 140,000,000 was constructed within four years. In addition to power generation, it will contribute to the field flood protection and agricultural production.
In February 2010, the FBiH Government approved a decision confirming the “existence of a public interest” for construction of priority power-generating plants.
According to this decision, Elektroprivreda Hrvatske zajednice Herceg Bosne will construct 11 gen-erating plants including six hydro power plants, four wind farms and the integrated lignite mining
and power project. The total investment value of these generating plants is about BAM 3,200,000,000. The above-mentioned projects are in different stages of preparation and construction. We particularly
worked on promotion of renewable energy sources and greenhouse gas emission reduction. This was con-
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GENERAL MANAGER’S REPORT
firmed by laying the foundation-stone for construction of the first wind farm in BiH – Mesihovina – Tomislavgrad with the planned annual output of 128-146 GWh.
Its construction will cost BAM 155,000,000. The major portion of funds was provided out of the German Develop-ment Bank KfW loan and the rest are our own funds.
Construction of new generating plants will contribute to development of economy and industry and offer new possibilities for employment and business for many contractors. In addition, traffic infrastructure will be improved and there will be many other benefits for the large social community.
In 2010, considerable funds were invested in other renewable energy projects as well as in revitalization and modernization of the existing hydro power plants, construction and reconstruction of the distribution network and facilities, and the projects of systematic improvement and modernization of the business operation.
One of the projects for construction and reconstruction of the distribution facilities and network worth BAM 21,000,000 was implemented and financed out of the European Investment Bank (EIB) loan. The project for in-stallation of remote reading meters in substations was also completed and installation of remote reading meters for households is in progress.
Meeting the European standards in the field of information technologies, JP Elektroprivreda HZHB d.d. Mostar is one of few companies that use the Customer Billing and Information System – Hepbilling, Business Intelli-gence System – bIns2 and Financial Management Information System – FMIS. Implementation of the Human Resources Management System started.
We kept on maintaining and improving business relations with all interested parties both in our system and the social community. The Company is oriented to satisfaction of all employes and customers.
Improvement of our relations with customers and timely informing; relations centralization; and more efficient, fast and professional communication with all types of support are implemented through the Customer Relations Unit. Its Information Center that will be put into operation very soon.
Completion of the started and launching of the new projects in accordance with the deci-sions of the Company’s majority owner – the FBiH Government; safe, reliable and quality sup-ply to customers at all voltage levels; network loss reduction; and keeping the achieved collection rate remain our main objective.
We keep on monitoring and reducing the operating expenses in all business activites with the successful power system control and new investments in human resources of JP Elektroprivreda HZ HB.
Mato ŽarićGeneral Manager
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cOMPANY PROFILE
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MISSIONThe mission of JP Elektroprivreda HZ HB d.d. Mostar is quality, reliable and secure power generation, distribu-tion and supply, and development of new power facilities according to the development needs of users in line with the development plans of Bosnia and Herzegovina.In achievement of its mission, JP Elektroprivreda HZ HB d.d. Mostar will follow its objectives:
Sustainability of overall development •Implementation of worldwide experience and ideas in power activities •Business efficiency •Development of competencies of specialists needed in power activities •Support to partners in similar activities •
JP Elektroprivreda HZ HB d.d. Mostar has a specific role in the process of integration of Bosnia and Herze-govina into the European energy area.
VISIONJP Elektroprivreda HZ HB d.d. Mostar wishes to become the main driving force of economic development in the areas of its responsibility and an active participant in the overall development of . Bosnia and Herzegovina.
All of our development programs should enable development of other activities for the benefit of all citizens of Bosnia and Herzegovina primarily for our benefit through the power system development
STRATEGYThe top-priority medium-term objective of JP Elektroprivreda HZ HB d.d. Mostar is finding a solution for bal-ancing power generation and increasing electricity demands primarily by construction of renewable sources taking into consideration the principles of sustainability and decrease in electricity imports.This objective will be accompanied by establishing the system. of management of quality, environment and business risks in the existing processes and investment projects
COMPANY PROFILE
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In the global liberalization and power sector restructuring, the systematic management of quality, and safety and environmental protection are impor-tant components of modern marketing and prorities in the business policy of JP Elektroprivreda HZ HB d.d. Mostar.
Quality is important in all parts of the Company. Each employee must know his role, and rights and liabilities in achieving the set business objec-tives for the Company to be efficient, open, prepared for marketing, coopera-tion with partners and investment.
The quality management system is based on the principles and require-ments of the internationally recognized standard ISO 9001:2008 in compli-ance with legal provisions, the Articles of Association and decisions of the Company, relevant conventions and directives, guidelines, recommenda-tions, norms and requrements of customers and other interested parties.
The Management Board is determined to implement the quality manage-ment policy in the business operation of the Company.
MARKET ORIENTATION – The main task of JP Elektroprivreda HZ HB d.d. Mostar is to meet the quality re-quirements of our customers and partners. This includes reliability and safety in power supply and service providing. Customer satisfaction is the key indicator of quality of our product and services and condition for business success and existence.
PROcESS ORIENTATION – The business operation of our Company is oriented to standardized, reliable and efficient busines processes that are permanently improved. The process-oriented and defined control system with defined functional and process competence, and documented implementation of all procedures is a guarantee for quality. Each business process is implemented according to internal rules (procedures and in-structions) and has a method of measurement of efficiency of labor with clearly defined parameters, criteria and competence.
DEcISION MAKING BASED ON FAcTS – Business decisions are based on data and information analyses, checking, and comparison of own results with the results of similar companies in the area.
PERMANENT IMPROVEMENT– In our busines system, there is nothing so good that it could not be better. We always have to check if a method is proper or if it is necessary to simplify or improve it. A permanent task
QUALITY MANAGEMENT POLIcY
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of all employees is to improve business processes, product and services taking into consideration quality, costs and time.
cOMMITMENT, TEcHNOLOGIcAL AND WORKING DIScIPLINE–We should have competent, trained and highly-motivated workers, team work, and technological and working discipline. Each activity in implementation of our processes requires commitment and discipline. Breach of technological and working discipline has a direct impact on risk and safety management.
PERMANENT MONITORING OF SUPPLIERS–Our facilities, plants and devices should be high-quality and special consideration is given to the selection of designers, suppliers and contractors. All suppliers should be continuously checked and verified. We do our best to make our suppliers and partners satisfied with our co-operation and to fulfil all our obligations.
EMPLOYEE SATISFAcTION–The Management Board tries to increase the employee satisfaction and company loyalty. This encourages employees to accept quality, safety and environmental protection as well as the pro-posed life style and work method.
Implementation of this policy is an obligation of all employees. Non-fulfilment of this obligation is consid-ered a breach of the working discipline.
2010 GENERAL DATA Capacity of hydro power plants (MW) 852
Power generation ( GWh ) 2,604.67
Electricity Exports GWh 359.04
Distribution lines km (< 110 kV) 11,726
Installed power of substations (MVA) 1,103
Distribution network losses 9.49 %* 15.77 %**
Number of customers 186,297
Number of employees 1,815
Average electricity price for households EURct / kWh 6.71 EUR ct/kWh (13.13 pf/kWh)
Collection rate 99.19 %
Realized profit BAM 40,746,515
Losses – **15.77 % for distribution consumption including BSI Jajce at 35 kV *9.49 % for distribution consumption and consumption at 110 kV or above
COMPANY PROFILE
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ORGANIZATION cHART
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GOVERNING BODIES
SHAREHOLDERS’ ASSEMBLYThe Shareholders’ Assembly is composed of shareholders. It decides on matters deter-mined by the Law and Articles of Association. Meetings of the Shareholders’ Assembly are convened once a year at least for reporting on the Company Business Report that includes the financial statements and reports of the Independent Auditor, Supervisory Board and Audit Board.
SUPERVISORY BOARDThe Supervisory Board consists of seven members appointed and revoked by the Shareholders’ Assembly pursuant to the Law (two members were appointed on April 12, 2010). It supervises the business affairs of the Company and decides on other matters determined by the Law and Articles of As-sociation. The meetings of the Supervisory Board are held as circumstances require but once in three months at least.
AUDIT BOARDThe Audit Board consists of three members. Obligations and responsibilities of the Board are determined by the Law and Articles of As-sociation.
Maid LjubovićMember
Ante KolobarićMember
Jerko PavličevićChairman of Supervisory Board
Karmela MiletićMember
Ivan ZaneMember
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Ivica ČuleExecutive Director of Power Generation Division
Stjepan KrasićExecutive Director of Development Division
Branka DadićExecutive Director of Legal Division
Stipe BagarićExecutive Director of Power Supply Division
Matan ŽarićGeneral Manager
Mila BuleExecutive Director of Economic Affairs Division
Ilija BakalarExecutive Director of Power Distribution Division
MANAGEMENT BOARDThe Management Board manages the business affairs of the Company, represents and acts for the Company and is responsible for regularity of operations. It consists of seven members (Gen-eral Manager and six Executive Directors).
GOVERNING BODIES
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BASIc LEGAL DATA
JP “Elektroprivreda Hrvatske zajednice Herceg Bosne“, a joint stock company, headquartered in Mostar, 106 A Mile Budaka (hereinafter called: Company) has had the legal continuity since November 17, 1992.In 2004, the 10% state capital of the Company was privatized.The Company bodies are appointed according to the Articles of Association : the Shareholders’ Assembly, Supervisory Board, Audit Board, and Management Board (general manager and executive directors of the Company).Identification number: 4227248350007.VAT ID No: 227248350007.
The Company stock capital amounts to BAM 736,166,000 and is divided into 7,361,660 ordinary shares.The nominal value of a share is BAM 100.00.The stock capital consists of: 10% private capital and 90% state capital
HOME TRADE AcTIVITIES OF THE cOMPANY ARE: power generation, distribution and supply, trading, representing and in the domestic electricity market, man-ufacture of distribution control equipment, manufacture of other electrical equipment, generation of hydro, thermal and other power, power transmission, sale and distribution, construction and maintenance of civil engineering and building construction facilities and their parts, construction and maintenance of hydro power plants, electrical installation and other installation work, agency services in specific products trade, wholesale of machines for industry and other business activities.
FOREIGN TRADE AcTIVITIES OF THE cOMPANY ARE:Imports of electricity and goods, and providing services included in the registered activities •Exports of electricity and goods, and providing services included in the registered activities •Agency services and representing in goods and services trade and •Imports of spare parts, raw materials and equipment for carrying out of activities •
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BASIC LEGAL DATA
STRUcTURE OF cOMPANY SHAREHOLDERS IN 2010
In 2002, the public subscription for shares in the second round was carried out and the 10% total capital amounting to BAM 73,616,600 was sold. On December 1, 2010, there were 1,635 shareholders. Legal enti-ties (residents and non-residents) own 7,172,435 shares and physical persons(residents and non-residents) 189,225 shares.
The largest share among legal entities is owned by the FBiH Government (6,626,306 shares or 90%) and the rest is owned by investment funds, banks, and other legal entities and physical persons – residents and non-residents.
STOcK TRADE – SASEAt the beginning of the reporting period (on January 5, 2010), the JPEMR* share value was BAM 55; on June 23, 2010 BAM 41.76 and at the end of the reporting period (on December 23 2010) BAM 54.00.
SHARES IN RELATED LEGAL ENTITIESJP “Elektroprivreda Hrvatske zajednice Herceg Bosne d.d. Mostar has a share in the stock capital of the company “Konstruktor-Neretva” d.o.o. Čapljina amounting to BAM 859,665.
During 2006, the stock capital of this company was increased by investment of the member Konstruktor-inženjering d.d. Split. This resulted in the decrease of our Company share to 14%.
In the period January – December 2009, the company “Konstruktor-Neretva” d.o.o. Čapljina operated at a gross profit of BAM 16,473.
In the stock capital of the company Elektrokontrol HZ H B Čapljina amounting to BAM 432,500.00, JP “Elektroprivreda Hrvatske zajednice Herceg Bosne d.d. Mostar has a share of BAM 247,139 or 57.14%. In 2010, this company operated at a gross profit of BAM 60,493.
* Name of JP Elektroprivreda HZ Herceg-Bosne d.d. Mostar in the Sarajevo Stock Exchange (SASE) since September 15, 2004.
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HUMAN RESOURcES
Employee Qualification Structure
Educ
atio
nal l
evel Power
Generation Division
Power Distribution
Division
Power Supply Division
company’s Division and other
organizational units
Total
Inde
x 11
/10
Stru
ctur
e in
%
Dec.31, 2009
Dec.31, 2010
Dec.31, 2009
Dec.31, 2010
Dec.31, 2009
Dec.31, 2010
Dec.31, 2009
Dec.31, 2010
Dec.31, 2009
Dec.31, 2010
1 2 3 4 5 6 7 8 9 10 11 12 13
Unskilled 35 32 27 37 4 4 1 1 67 74 110,4 4
Semi-skilled 2 2 19 14 2 2 1 0 24 18 75,0 1
Skilled 70 70 181 158 67 41 5 5 323 274 84,8 15
Second. chool 129 130 224 240 170 169 25 19 548 558 101,8 31
Highly-skilled 74 72 227 261 23 44 2 1 326 378 116,0 21
Assoc. degree 26 27 54 54 15 19 10 11 105 111 105,7 6
B.Sc. 85 89 104 123 58 69 105 115 352 396 112,5 22
M.Sc. 2 2 2 2 1 0 0 0 5 4 80,0 0
D.Sc. 1 1 0 0 0 0 1 1 2 2 100,0 0
Total 424 425 838 889 340 348 150 153 1.752 1.815 103,6 100
On December 31, 2010 JP “Elektroprivreda HZ Herceg-Bosne” d.d. Mostar had 1815 employees. In com-parison with the end of 2008, the number of employees increased by 3.6% or 63 employees.
Comparing the qualification structure of the employees at the end of 2009 and at the end of 2010, the number of employees having a university degree increased by 12.5% and of highly-skilled employees by 16%.
In 2010, we employed 80 trainees.We kept on awarding scholarship to university students, reffering our employees to workshops, training
courses and other types of education and training.
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Employee Qualification Structure as of December 31, 2010. Total number of employees: 1815
M.Sc. - 4
D.Sc. – 2
Unskilled - 74
Semi-skilled - 18
Skilled - 274
Secondary school - 558
Highly-skilled - 378
Associate degree - 111
B.Sc. - 396
Employee Age Structure
Years of age
Power Generation
Division
Power Distribution
Division
Power Supply Division
company’s Division and other
organizational unitsTotal
Inde
x 11
/10
Stru
ctur
e in
%
Dec.31, 2009
Dec.31, 2010
Dec.31, 2009
Dec.31, 2010
Dec.31, 2009
Dec.31, 2010
Dec.31, 2009
Dec.31, 2010
Dec.31, 2009
Dec.31, 2010
1 2 3 4 5 6 7 8 9 10 11 12 13
Under 30 42 50 112 113 54 61 56 54 264 278 105,3 15
30-39 81 75 199 219 92 94 36 40 408 428 104,9 23
40-49 120 119 310 312 109 100 32 29 571 560 98,1 31
50-59 150 150 191 215 79 89 21 27 441 481 109,1 27
Over 60 31 31 26 30 6 4 5 3 68 68 100,0 4
Total 424 425 838 889 340 348 150 153 1.752 1.815 103,6 100
JP “Elektroprivreda HZ Herceg-Bosne” d.d. Mostar has a good age structure. About 39% are employees under 40 and this enables comparatively easy adjustment to new working and operating conditions.
1101 employees (60.7%) are of technical, 230 (12.6%) of economic and 484 (26.7%) of other (legal etc.) background.
BASIC LEGAL DATA
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Employee Experience Structure. Total number of employees: 1815
Years of experience
Power Generation Division
Power Distribution
Division
Power Supply Division
company’s Division and other
organizational units
Total
Inde
x 11
/10
Stru
ctur
e in
%
Dec.31, 2009
Dec.31, 2010
31.12.2009.
30.12. 2010.
31.12.2009.
30.12. 2010.
31.12.2009.
30.12. 2010.
31.12.2009.
30.12. 2010.
1 2 3 4 5 6 7 8 9 10 11 12 13
Under 10 80 89 199 220 102 103 86 90 467 502 107,5 28
10-19 120 114 305 313 123 127 30 29 578 583 100,9 32
20-29 113 112 215 221 75 75 26 25 429 433 100,9 24
30-35 72 70 86 91 27 25 4 7 189 193 102,1 11
Over 35 39 40 33 44 13 18 4 2 89 104 116,9 5
Total 424 425 838 889 340 348 150 153 1752 1815 103,6 100
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In the period January – December 2010, JP “Elektroprivreda HZ Herceg-Bosne” d.d. Mostar operated at a profit of BAM 40,746,515 due to exceptionally favourable hydrological circumstances resulting in 15.91% higher power generation than the revised plan and to good resource management. All hydro power plants overfulfilled their plans. As hydrological circumstances were exceptionally favourable, the PSPP Čapljina fulfilled its annual power generation plan in the first half of 2010 and overfulfilled the plan by 36.6%.
PROFIT AND LOSS AccOUNTThe total income amounted to BAM 382,991,119. It was 6% higher than the revised plan and 23% higher than in the previous year.
The operating income (income from sales of electricity and services) amounted to BAM 369,480,600. It was 4% higher than the plan. The income from electricity sales included the income from sales to tariff customers at the distribution voltage levels (47.5%) and at 110 KV or above and other non-tariff customers (40.7%), and the income from international trade – electricity exports (7.3%). The income from service sales in the domestic market amounted to BAM 16,717,492 (4.5%).
The income from sales to tariff customers at 110 KV or above and income from electricity sales in the market included the income from electricity sales to the fol-lowing customers: Aluminij d.d. Mostar (BAM 87,255,649), Elektroprivreda BiH (BAM 21,444,671), other non-tariff customers within BiH (BAM 59,574,441) and Railways of FBiH (BAM 97,818).
The income from sales of services amounted to BAM 16,717,492. It included the income from electricity loss billing for the customers at 110 KV or above (BAM 3,889,494), the income from sales of services to third par-ties (BAM 12,827,998) consisting of the income from: issuing power connection certificates, design audits, maintenance and reconstruction of the power network (Power Distribution Division), inspection of metering points, meter calibration, replacement of time switches, and cutting and reconnection of customers (Power Supply Division).
cOMPANY’S PERFORMANcE
COMPANY’S PERFORMANCE
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The other income (BAM 11,166,925) included the income from: donations, collection of adjusted receiva-bles, compensations for damages from insurance companies, the income from previous years, penalties, reversal of long-term provisions, and other income.
Bilanca uspjeha (KM)
No ItemJan.-Dec. 2009
RealizationJan.-Dec. 2010Revised plan
Jan.-Dec. 2010Realization
Index5/3
Index5/4
1 2 3 4 5 6 7
1 Operating income (1.1.+2.+3.) 306.180.807 356.923.316 369.480.600 121 104
1.1.Income from electricity sales (1.1.1.+1.1.2.+1.1.3.+ 1.1.4.)
292.246.676 342.423.316 352.763.108 121 103
1.1.1.Income from tariff customers at distribution voltage levels
172.889.953 180.644.756 175.323.402 101 97
1.1.2. Income from other 35 kV customers 12.757.131 3.290.000 3.440.435 27 0
1.1.3. Income from 110 kV or above customers 93.595.016 88.074.560 87.353.467 93 99
1.1.4. Income from electricity sales in international market 13.004.576 70.414.000 86.645.804 666 123
2.Income from sales of services in international market
3.985.484 0 0 0 0
3. Income from sales of services in domestic market 9.948.647 14.500.000 16.717.492 168 115
4. Financial income 661.820 1.450.000 2.343.594 354 162
5. Other income 5.022.273 3.920.000 11.166.925 222 285
6. TOTAL INcOME (1+2+3+4+5) 311.864.900 362.293.316 382.991.119 123 106
7. Operating expenses (7.1.+7.2.+7.3.+7.4) 263.539.294 287.984.100 297.073.242 113 103
7.1. Costs of electricity purchases 95.863.576 90.780.600 99.145.399 103 109
7.2. Operating expenses 72.337.104 89.123.200 96.375.556 133 108
7.3. Depreciation costs 41.516.788 49.106.800 43.901.136 106 89
7.4. Staff costs 53.821.826 58.973.500 57.651.151 107 98
8. Inventory value harmonization expenses - 700.000 3.383.281 483
9. Financial expenses 1.844.619 3.545.526 2.979.887 162 84
10. Other expenses 23.137.086 35.500.000 38.808.194 168
11. TOTAL EXPENSES (7+8+9+10) 288.520.999 327.729.626 342.244.604 119 104
12. Gross profit/loss (6-11) 23.343.901 34.563.690 40.746.515 175 118
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The total expenses amounted to BAM 342,244,604. They were 4% higher than the plan and 19% higher than in the previous year.
The operating expenses amounted to BAM 297,073,242, financial expenses (interest and negative exchange rate differences) BAM 2,979,887, other expenses BAM 38,808,194 and inventory value harmonization expenses BAM 3,383,281.
The costs of electricity purchases amounted to BAM 99,145,399, depreciation costs BAM 43,901,136, staff costs BAM 57,651,151 and other operating expenses BAM 96,375,556.
Other operating expenses were 8% higher than the plan due to the increase in the reservoir tax (index 107.2), water rate (index 115.8) and fee for Elektroprijenos (index 3.1) as a result of overfulfilment of the generation plan by 15.91 since these costs are charged per kWh of the generated power.
The salary budget amounted to BAM 57,651,151 and was 7% bigger than in the previous year and 2% smaller than the plan.
This decrease in the salary is a result of a different method of payroll computation in the Gross Profit and Loss Account through the SAP system since the previous year salary included taxable items and contribu-tions on: jubilee cash awards, holiday cash grants, religious holiday allowances and compensations in kind, benefit and services.This method was used in preparation of the 2010 salary plan.
The largest portion of other expenses included the bad and doubtful debts (BAM 37,383,646) written-off after one year.
The remaining portion of BAM 1,424,548 included penalties and compensations for damages (BAM 162,484), subsequently determined expenses from the previous years (BAM 520,969), undepreciated value write-off (BAM 370,108) and other expenses (BAM 350,987).
On December 31, 2009, the total receivables from the tariff customers at distribu-tion levels, customers at 110 KV or above and customers abroad amounted to BAM 168,243,008, adjustment of receivables (BAM 96,148,503) and receivables after adjustment (BAM 72,094,505) that were 8.5% higer than the same receivables at the beginning of the year.
BALANcE SHEETOn December 31, 2010, the Company assets value was BAM 1,250,572,538. It was higher than on December 31, 2009 (index 103.9).
The value of the fixed assets (real property, facilities and equipment, and long-term investments and loans) increased by 3.4% and of the current assets (home and foreign trade receivables, raw material and material inventories and other short-term receivables) by 8.8%.
In the total assets, a share of the fixed assets was 89% and of the current assets 11%.COMPANY’S PERFORMANCE
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In the liabilities, a share of the capital was 77%, of the long-term liabilities 18% and of the current li-abilities 5%.
In the long-term liabilities, a share of the long-term accruals and provisions was 37% and of the long-term credits 63%.
The capital consists of the stock capital amounting to BAM 736,166,001.00, revaluation reserves BAM 254,834,515, retained earnings BAM 49,376,756, accumulated losses BAM 69,758,921 and other reserves BAM 5,524,740.
Balance Sheet (BAM)
No ITEM As of Dec.31, 2009 As of Dec.31, 2010Share(in %)
Index 4/3
1 2 3 4 5 6
I ASSETS
1 Fixed assets 1.075.824.029 1.112.176.917 89 103,4
2 Current assets 127.257.883 138.395.621 11 108,8
A TOTAL ASSETS (1+2) 1.203.081.912 1.250.572.538 100 103,9
Contingent assets 327.016.191 327.106.377 100,0
II LIABILlTIES
1 Capital 936.272.268 967.143.091 77 103,3
2 Ling-term liabilities (2.1+2.2) 211.483.104 225.350.881 18 106,6
2.1. Long-term financiaI commitments 127.899.837 142.978.756 63 111,8
2.2. Long-term accruals and provisions 83.583.267 82.372.125 37 98,6
3 Current liabilities (3.1+3.2+3.3) 55.326.540 58.078.566 5 105,0
3.1. Short-term financiaI commitments 10.628.781 11.221.698 19 105,6
3.2. Trade payables and other Iiabilities 42.100.173 42.711.608 74 101,5
3.3. Other current Iiabilities 2.597.586 4.145.260 7 159,6
B TOTAL LIABILlTIES (1+2+3) 1.203.081.912 1.250.572.538 100 103,9
Contingent liabilities 327.016.191 327.106.377 100,0
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Capital Structure as of December 31, 20010
Retained earnings (49,376,756)
Revaluation reserves (245,834,515)
Accumulated losses (69,758,921)
Stock capital (736,166,001)
Other reserves (5,524,740)
COMPANY’S PERFORMANCE
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Investments of JP EP HZ HB in 2010
Organizational part2010 revised plan 2010 realization
Index 6/2
Index 7/3
Index 8/4
Index 9/5
Total Own funds Loans Other Total Own funds Loans Other
1 2 3 4 5 6 7 8 9 10 11 12 13
JP Elektroprivreda HZ HB d.d. Mostar 82.140.088 54.803.628 26.476.460 860.000 59.390.013 29.861.886 28.713.867 814.260 72,3 54,5 108,5 94,7
A. Power Generation Division 33.771.260 23.160.000 9.751.260 860.000 27.470.945 17.599.830 9.056.855 814.260 81,3 76,0 92,9 94,7
B. Power Distribution Division 35.260.923 18.985.723 16.275.200 0 27.205.569 7.580.289 19.625.280 0 77,2 39,9 120,6 0,0
c. Power Supply Division 3.830.000 3.830.000 0 0 1.752.950 1.752.950 0 0 0 0 0 0
D.company’s Division and Other Organizational Units
9.277.905 8.827.905 450.000 0 2.960.549 2.928.817 31.732 0 31,9 33,2 7,1 0
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Investments of JP EP HZ HB in 2010
Organizational part2010 revised plan 2010 realization
Index 6/2
Index 7/3
Index 8/4
Index 9/5
Total Own funds Loans Other Total Own funds Loans Other
1 2 3 4 5 6 7 8 9 10 11 12 13
JP Elektroprivreda HZ HB d.d. Mostar 82.140.088 54.803.628 26.476.460 860.000 59.390.013 29.861.886 28.713.867 814.260 72,3 54,5 108,5 94,7
A. Power Generation Division 33.771.260 23.160.000 9.751.260 860.000 27.470.945 17.599.830 9.056.855 814.260 81,3 76,0 92,9 94,7
B. Power Distribution Division 35.260.923 18.985.723 16.275.200 0 27.205.569 7.580.289 19.625.280 0 77,2 39,9 120,6 0,0
c. Power Supply Division 3.830.000 3.830.000 0 0 1.752.950 1.752.950 0 0 0 0 0 0
D.company’s Division and Other Organizational Units
9.277.905 8.827.905 450.000 0 2.960.549 2.928.817 31.732 0 31,9 33,2 7,1 0
The total realized investment amount-ed to 72.3% of the plan. The invest-ment out of our own funds (index 54.5) was realized because temporary construction permits were not ob-tained (unsettlement or slow settle-ment of property disputes) and other permits necessary for the planned investment realization, and slow set-tlement of legal disputes connected to procurement of goods and services and work performance according to the Law on Public Procurement (bid-ders often appeal the Company’s con-tract award decisions).
COMPANY’S PERFORMANCE
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Independent Auditors’ Report to the shareholders of JP Elektroprivreda Hrvatske zajednice Herceg-Bosne d.d. Mostar We have audited the accompanying financial statements of JP Elektroprivreda Hrvatske zajednice Herceg - Bosne d.d. Mostar (‘the Company’) which comprise the statement of financial position as at 31 December 2010, and the statements of comprehensive income, changes in equity and cash flows for the year then ended, and a summary of significant accounting policies and other explana-tory notes.
Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards, and for such internal control as man-agement determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditors’ Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with relevant ethical requirements and plan and perform the audit to obtain reason-able assurance on whether the financial statements are free of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on our judgment, including the assess-ment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the entity‘s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the en-tity‘s internal control. An audit also includes evaluating the appropriateness of accounting principles used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Basis for Qualified Opinion
1. As explained in Note 16 to the financial statements, trade receivables disclosed in the cor-responding 2009 figures included irrecoverable overdue amounts of KM 30,551 thousand for which the Company did not raise an impairment. The Company has recorded the impairment allowance relating to these irrecoverable overdue amounts in the current 2010 year income statement. International Accounting Standard (‘IAS’) 8 Accounting Policies, Changes in Ac-counting Estimates and Errors, requires such an adjustment to have been recorded as a prior year adjustment and accordingly, the profit for the current year should be increased by KM 30,551 thousand and opening accumulated loss on 1 January 2010 should be increased by KM 30,551 thousand.
2. We were appointed as auditors of the Company on 29 March 2011 and thus did not observe the counting of the physical inventories as of 31 December 2010. We were unable to satisfy our-selves by alternative means concerning inventory quantities held at 31 December 2010. Since closing inventories enter into the determination of the financial performance and cash flows, we were unable to determine whether adjustments might have been necessary in respect of the profit for the year reported in the statement of comprehensive income and the net cash flows from operating activities reported in the cash flow statement.
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COMPANY’S PERFORMANCE
3. As explained in Note 13 to the financial statements, the Company recognized the effects of the revaluation of donated property, plant and equipment as increase in deferred income liabilities of KM 30,544 thousand at the date of a prior revaluation, which is not in accordance with In-ternational Accounting Standard (‘IAS’) 16 Property, plant and equipment which requires that an increase of asset‘s carrying amount as a result of a revaluation shall be recognized in other comprehensive income and accumulated in equity under the heading of revaluation reserves. Due to the nature of the accounting records of the Company, we are unable to determine the net effect of such accounting treatment to the balances for deferred income, revaluation re-serves, accumulated loss income from donations and depreciation expense as at and for the year ended 31 December 2010 and prior 2009 related corresponding information.
4. The Company did not account for deferred taxation in accordance with International Accounting Standard (‘IAS’) 12 Income Taxes in the financial statements of the Company as at and for the year ended 31 December 2010. Had deferred tax been accounted for in accordance Interna-tional Accounting Standard (‘IAS’) 12 Income Taxes, adjustments would have been made to increase deferred tax liabilities and decrease revaluation reserves by KM 24,583 thousand for the year ended 31 December 2010.
Qualified Opinion
In our opinion, except for the effects of the matters referred to in paragraphs 1 and 4 and except for the possible effects of the matter described in paragraphs 2 and 3 above under Basis for Qualified Opinion, the financial statements gives a true and fair view of the financial position as at 31 Decem-ber 2010, and of its financial performance and cash flow for the year then ended in accordance with International Financial Reporting Standards.
Other matters
The financial statements of the Company as at and for the year ended 31 December 2009 were au-dited by another auditor who expressed a modified opinion in respect of valuation of trade receivables of BAM 30,551 thousand on those financial statements on 6 April 2010.
29 April 2011KPMG B-H d.o.o. za reviziju Registered auditors Fra Anđela Zvizdovića 1 71000 Sarajevo Bosnia and Herzegovina
For and on behalf of KPMG B-H d.o.o. za reviziju:
Manal Bećirbegović Senad PekmezExecutive Director FBiH Certified Auditor License No. 3090044102
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Map of power system in BiH in 2010
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POWER GENERATION DIVISION
POWER GENERATION DIVISION
The Power Generation Division carries out the activities of preparation, planning and integration of power gen-eration, regular and investment maintenance, research, revitalization of the existing plants, pre-construction and construction of new plants and other activities according to the Regulations of Internal Organization of JP Elektroprivreda HZ HB d.d. Mostar.
The main organizational parts of the Division are: Executive Director’s Office, Generation Control Department, Hydro Power Plants - Neretva River Basin Unit, Hydro Power Plants - Vrbas River Basin Unit and Unit for Pre-Construction and Construction of Generating Plants.
All power is generated in hydro power plants with the total capacity of 852 MW and possible annual output of 2,277 GWh.
Generating Plants
Hydro Power Plants Put into Operation Installed capacity (MW)
HPP Rama 1968 2 x 80
PSPP Čapljina 1979 2 x 220
HPP Mostar 1987 3 x 24
HPP Jajce 1 1957 2 x 30
HPP Jajce 2 1954 3 x 10
HPP Peć Mlini 2004 2 x 15
HPP Mostarsko blato 2010 2 x 30
In 2010, the main activities were regular maintenance and monitoring the generation process. The op-erating conditions in all hydro power plants were therefore very good. The plants generated 2,604.67 GWh (115.91% more than the plan).
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HPP RAMAThe hydro power plant Rama is the largest plant in the system of the hydro power plants on the Neretva river. It is located in Herzegovina- Neretva Canton. The power house is situated by the road Jablanica-Rama and the dam and reservoir in the very vicinity of the town of Prozor-Rama. It was put into operation in 1968.
Mai
n da
ta
Number of generating sets 2
Installed capacity 160 MW
Plant type Diversion - storage
Gene
rato
rs
Type3-phase synchronous
S-4758-16
Manufacturer Končar
Put into operation 1968
Nominal power 90 MVA
Turb
ines
Type Francis
Manufacturer Litostroj
Installed capacity 80 MW
Dam
and
rese
rvoi
r
Dam construction height 103 m
Dam height 96 m
Hydraulic height 89 m
Crest length 230 m
Headrace tunnel length 9,536 m
Headrace tunnel diameter 5,0 m
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POWER GENERATION DIVISION
HPP MOSTARThe hydro power plant Mostar is the last plant in the range of the plants constructed on the Neretva river and is located 6 km upstream of the city of Mostar in Herzegovina- Neretva Canton. It was put into operation in 1987 and again in 1997 after rehabilitation of the war damages.
Mai
n da
ta
Number of generating sets 3
Installed capacity 72 MW
Plant type Adjacent-to-dam - storage
Gene
rato
rs
Type3-phase synchronous
S-6546-40
Manufacturer Končar
Put into operation 1987/1988
Nominal power 30 MVA
Turb
ines
Type Kaplan K - 5
Manufacturer Litostroj
Installed capacity 23.6 MW
Dam
and
res
ervo
ir
Dam construction height 44 m
Dam height 28 m
Crest length 255.6 m
Crest elevation 81 m.n.m
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HPP PEĆ MLINIThe hydro power plant Peć Mlini is located in the municipality of Grude in West Herzegovina Canton. It uses energy potential at a head of 107 m between the Imotski-Grude field-Nuga reservoir and power house in the Petnik hill foot in Peć Mlini. It was put into operation in 2004.
Turb
ines
Number of generating sets 2
Installed capacity 15 MW
Plant type Diversion - run-of-river
Turb
ines
Type3-phase synchronous
Manufacturer Končar
Put into operation 2004
Nominal power 18 MVA
Turb
ines
Type Francis K - 5
Manufacturer Litostroj
Installed capacity 15.88 MW
Dam
and
Res
ervo
ir
Upper reservoir level - maximum 252 m.n.m
Upper reservoir level - minimum 249 m.n.m
Nominal discharge 15 m3/sec
Headrace tunnel length 1,547 m
Headrace tunnel diameter 3.6 m
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POWER GENERATION DIVISION
PSPP ČAPLJINAThe pumped storage power plant is located on the lower Trebišnjica river in Herzegovina- Neretva Canton. It collects its catchment inflow water and the Trebišnjica water through the Popovo field. It was put into operation in 1979.
Mai
n da
ta
Number of generating sets 2
Installed capacity 420 MW
Plant type Reversible - pumped storage
Gene
rato
rs
Type3-phase synchronous
Manufacturer AEG
Put into operation 1979
Nominal power 240 MVA
Turb
ines
Type Francis
Manufacturer Riva - Calconi
Manufacturer 250 MW
Dam
and
rese
rvoi
r
Upper reservoir level - maximum 231.5 m.n.m
Upper reservoir level - maximum 224 m.n.m
Nominal discharge – turbine mode 112.5 m3/sec
Nominal discharge – pumping mode 85 m3/sec
Headrace tunnel length 8,110 m
Headrace tunnel diameter 8.0 m
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HPP JAJcE IThe hydro power plant Jajce I is located on the left bank of the Vrbas river by the road Jajce- Banjaluka in Middle Bosnia Canton. It is 7 km far from the town of Jajce. It collects the water of the Big Pliva lake which is situated at the height of 428 m asl. It was put into operation in 1957.
Mai
n Da
ta
Number of generating sets 2
Installed capacity 60 MW
Plant type Diversion - run-of-river
Gene
rato
rs
Type3-phase synchronous
Manufacturer Končar
Put into operation 1957
Nominal power 36 MVATu
rbin
es
Type Francis
Manufacturer KMW
Installed capacity 30 MW
Dam
and
rese
rvoi
r
Minimum operating reservoir level 425.8 m.n.m
Maximum operating reservoir level 427.1 m.n.m
Headrace tunnel length 5,700 m
Headrace tunnel diameter 5.4 m
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POWER GENERATION DIVISION
HPP JAJcE IIThe hydro power plant Jajce II was constructed on the Vrbas river 17 km downstream of the town of Jajce in Middle Bosnia Canton. It was put into operation in 1954.
Mai
n Da
ta
Number of generating sets 3
Installed capacity 30 MW
Plant type Diversion - run-of-river
Gene
rato
rs
Type3-phase synchronous
Manufacturer Končar
Put into operation 1954
Nominal power 12.5 MVA
Turb
ines
Type Francis
Manufacturer Voith + Litostroj
Installed capacity 10 MW
Dam
and
rese
rvoi
r
Minimum operating reservoir level 326.5 m.n.m
Maximum operating reservoir level 328.5 m.n.m
Headrace tunnel length 2,880 m
Headrace tunnel diameter 5.5 m
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HPP MOSTARSKO BLATO
Mai
n da
ta
Number of generating sets 2
Installed capacity 2 x 30 MW
Plant type diversion
Gene
rato
rs
Type 3-phase synchronous
ManufacturerKončar-generatori i motori, d.d. Zagreb
Put into operation 2010.
Nominal power 35.300 kVA
Turb
ines
Type Francis, vertical
ManufacturerLITOSTROJ POWER d.o.o. Ljubljana
Installed capacity 29,960 MW
Dam
and
rese
rvoi
r Dam construction height - m
Dam height - m
Hydraulic height - m
Crest length - m
Headrace tunnel length 2,207 m
Headrace tunnel diameter 4.20 m
The HPP Mostarsko Blato is located south-west of Mostar and uses energy potential at the head of 178m between Mos-tarko Blato and Bišće Field i.e. the Neretva river valley.
The HPP Mostarsko Blato collects the Lištica catchment in-flow water. This plant will not only be used for power gen-eration but also for the field flood protection by construction of new structures of the headrace tunnel and enclosed flood channel to the Neretva river.
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The plant consists of 9 civil structures - power facilities: reservoir, intake structure, headrace tunnel, surge tank and valve chamber, penstock, power house, tailrace basin, enclosed flood channel and linking transmission line.
The preparation and construction started in 2006 and investment amounted to BAM 140 M. The annual output is 170 GWh and installed capacity 60 MW.
BASIc DATA ON THE HPP MOSTARSKO BLATO:
INTAKE STRUcTURE The headrace tunnel intake structure and headrace tunnel are situated 50 m south of the existing flood intake structure (the Varda tunnel). The intake structure consists of two parts. Its bottom is at the level of the headrace tunnel.
HEADRAcE TUNNELThe 2207 m long headrace tunnel is constructed through the Varda hill behind the intake structure. The bottom elevation at the entrance is 214 m and at the end 196.20 m. The headrace tunnel has a horseshoe cross section with a radius of 4.2 m. The reinforced concrete lining is 30 cm thick.
SURGE TANK – LOWER cHAMBER AND UPPER BASINAt the end of the headrace tunnel a surge tank is located to compensate the water oscillations within the system which are caused by load changes of the generating sets. The vertical shaft connects the 47.0 m long lower chamber and the upper basin which has a circular shape and volume of 3,000.0 m3.
VALVE cHAMBERThe valve chamber is located downstream from the surge tank and its dimensions are 10.70x9.70 m. It houses the butterfly valve and is situated at the headrace tunnel entrance.
POWER GENERATION DIVISION
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PENSTOcKThe penstock with the internal diameter of 3m and the length of 360 m has 3 fix
points and 2 deflection joints. Its underground section is 140 m long.
POWER HOUSEThe power house accommodates two 30 MW units. It is connected to the 110 kV overhead
line. The power house is situated at the right Jasenica bank downstream from the stilling basin of the existing flood spillway on the toe of the hill Dobraljina.
TAILRAcE BASIN The tailrace basin has a volume of 10 000 m3 and is situated downstream from the power house. It
receives the water from the Jasenica river, HPP Mostarsko Blato and the existing flood spillway. It has a function to regulate the Jasenica river discharge and discharge to the flood channel or to the Neretva river.
At the end of the tailrace basin 3 flaps for water discharge regulation are installed.
TRANSMISSION LINEThe new 110 kV transmission line connects the HPP Mostarsko Blato to the 110 kV Mostar 4 (Čule substation) – Mos-
tar 5 (Rodoč substation) transmission line included in the BiH grid.
FLOOD cHANNELThe flood channel is constructed for evacuation of the total HPP Mostarsko Blato
installed flow of 40 m3/s. This enables the plant operation independent on the Jasenica discharge downstream. The intake structure has two 5m wide spillways with gates.The capacity of the spillways with open gates is 2x20 m3/s.
ENVIRONMENTAL IMPAcT AND LOcAL cOMMUNITYThe Environmental Impact Study is a part of the Feasilbility Study for the HPP Mostarsko Blato
prepared by Verbundplan from Austria. It confirms that construction of the HPP Mostarsko Blato has a minimum impact on environment. It does not jeopardize the existing state and in addition to power
generation, it provides better field flood protection (increased water discharge to the Neretva river). This will considerably contribute to development of agriculture and other industries in the whole region.
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POWER GENERATION DIVISION
Monthly Power Generation (GWh) in Hydro Power Plants in 2010
January February March April May June July August September October November December Total
HPP Rama 57.862 59.307103.804101.085 91.865 78.748 67.163 57.691 67.549 77.108 35.680 85.043 882.905
PSPP Čapljina
141.001 154.142156.862 41.217 40.841 13.112 579 715 1.615 11.291 90.663 142.199 794.238
HPP Mostar 32.297 28.567 34.031 36.042 32.727 19.867 12.076 9.812 15.483 26.139 34.911 38.360 320.309
HPP Jajce 1 34.389 25.681 30.241 29.757 24.971 23.859 15.537 8.899 6.828 7.228 18.674 31.688 257.752
HPP Jajce 2 18.812 16.361 20.154 19.744 18.999 18.070 14.019 8.880 7.782 8.406 13.837 19.629 184.693
HPP Peć Mlini
17.727 19.089 20.254 15.224 10.932 4.340 1.517 745 641 1.146 13.249 18.857 123.720
HPP M. Blato 0 0 0 0 6.585 11.985 0 0 0 0 9.489 12.991 41.050
Total 302.087 303.148 365.345 243.069 226.920 169.982 110.890 86.740 99.880 131.318 216.502 348.769 2.604.667
200.000
150.000
100.000
50.000
0
HPP M. Blato
HPP Peć Mlini
HPP Jajce 2
HPP Jajce 1
HPP Mostar
PSPP Čapljina
HPP Rama
January February March April May June July August September October December prosinac
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HPP Rama PSPP Čapljina HPP Mostar HPP Jajce I HPP Jajce II HPP Peć Mlini HPP M.Blato Total
2000 653,80 121,65 181,13 197,95 152,63 1307,172001 722,90 283,18 197,34 226,81 170,31 1600,542002 455,00 117,00 199,00 229,00 173,00 1173,002003 570,00 162,00 200,00 163,00 137,00 1232,002004 674,98 327,20 257,10 241,48 161,00 6,89 1668,652005 729,26 317,59 239,02 240,63 173,65 68,53 1768,692006 864,64 331,68 242,47 229,07 161,70 55,22 1884,792007 467,03 111,24 193,33 170,90 141,79 39,79 1124,072008 557,31 115,42 250,25 209,21 152,38 71,08 1355,642009 805,82 386,28 257,33 232,64 166,72 91,03 1939,822010 882,91 794,24 320,31 257,75 184,69 123,72 41,05 2604,67
POWER GENERATION TREND FROM 2000 TO 2010 (GWH)
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
2,500
2,000
1,500
1,000
500
0
HPP Rama - 34%
PSPP Čapljina - 30%
HPP Mostar - 12%
HPP Jajce 1 - 10%
HPP Jajce 2 - 7%
HPP Peć Mlini - 5%
HPP M. Blato - 2%
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POWER GENERATION DIVISION
cONSTRUcTION OF GENERATING PLANTS
In order to have our own development program and to meet the demands of our customers, we has been continuously working on the projects for use of renewable energy sources: wind, water and fossil fuels. In addition, preparations are made for the project of use of solar energy and possible gasification in the areas of responsibility of the Company.
According to the strategic plan and program for BiH energy, the development projects of EP HZHB are in-cluded in the top-priority projects in BiH.
On February 15, 2010, the FBiH Government approved a decision confirming the “existence of a public interest” for construction of 28 priority power-generating plants.
According to this decision, Elektroprivreda Hrvatske zajednice Herceg Bosne will construct 11 generating plants.
Item Installed capacity
Outputconstruction
durationTo be put into
operationInvestment
construction workers
New employees
MW GWh years year mil. euros man/year No
Thermal Power Plants 550,00 3.000,00 1.100,00 6.000 790
Mine and TPP Kongora 550,00 3.000,00 5 2018. 1.100,00 6.000 790
Hydro Power Plants 162,60 445,70 203,76 2.050 81
PSPP Vrilo 64,00 242,96 4,5 2015. 89,11 400 25
PSPP Kablić 52,00 73,13 3 2021. 58,42 400 25
HPP Han Skela 12,00 52,00 2 2015. 29,50 300 10
HPP Ugar Ušće 11,60 33,19 2 2016. 12,87 350 7
HPP Vrletna Kosa 11,20 22,54 2 2018. 6,93 300 7
HPP Ivik 11,20 21,88 2 2017. 6,93 300 7
Wind Farms 200,00 626,11 316,72 1.270 62
WF Borova Glava 52,00 149,62 3 2017. 78,00 350 16
WF Mesihovina 44,00 128,53 3 2013. 78,00 300 14
WF Velika Vlajna 32,00 89,36 3 2015. 52,72 220 10
WF Poklečani 72,00 258,60 3 2016. 108,00 400 22
Total 912,6 4.071,81 1.620,48 9.320 933
Note: Small hydro power plants are not included.
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PROJEcT AcTIVITIES
WIND FARMS
WF MESIHOVINAThe Loan and Project Agreement and the Financing Agreement for construction of the wind farm Mesi- •hovina were signed between KfW, Bosnia and Herzegovina, the Federation of BiH and JP Elektroprivreda HZ HB d.d. Mostar in Sarajevo on February 23, 2010.The Preliminary Design was prepared. •The General Design for the 20/110 kV ST Gornji Brišnik was prepared. •The Land Acquisition and Compensation Study was prepared. •The procedure for selection of the consultant Fichtner GmbH&CO KG was carried out. •The Waste Management Plan was prepared. •On the basis of the prepared Expropriation Study for the wind farm Mesihovina, the Tomislavgrad Mu- •nicipal Council approved a decision confirming the “existence of a public interest” for construction of the wind farm Mesihovina.The procedure for obtaining the urban permit from the Federation Ministry of Physical Planning started •(15 permits obtained by the end of 2010).The WF Mesihovina Unit was set up, a temporary prefabricated building was constructed in Tomislavgrad •and the access road to the WF Mesihovina was constructed.The measuring sensors were replaced at the site of the 50m high measuring mast. •
WF VELIKA VLAJNA/JASTREBINKAThe Feasibility Study for the wind farm Velika Vlajna/Jastrebinka was prepared. •The field visit, bases preparation, geodetic survey, geological prospecting and investigations for the needs •of the Feasibility Study for the wind farm Velika Vlajna/Jastrebinka and the Prior Environmental Assess-ment were carried out.The General Design for the 20/110 kV ST Jastrebinka was prepared. •The measuring sensors were replaced at the site of the 50m high measuring mast. •The Waste Management Plan was prepared. •The prior water permit for the wind farm Velika Vlajna/Jastrebinka was obtained. •The procedure for obtaining the concession from the relevant canton ministry and consent from the city •of Mostar started.The document “ Application for Issuing an Environmental Permit for the Wind Farm Velika Vlajna” was •prepared and the procedure for obtaining the environmental permit from the Federation Ministry of Environment and Tourism started.
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WF PoKLEČANIThe 50m high measuring mast with the highly precise measuring equipment was installed. •The preliminary Feasibility Study for the wind farm Poklečani was prepared. •The project was nominated for getting a grant for preparation of the Feasibility Study and Environmental Im- •pact Study from the Western Balkan Investment Framework (WBIF) Fund.The field visit, bases preparation, geodetic survey, geological prospecting and investigations for the needs •of the preliminary Feasibility Study for the wind farm Poklečani and the Prior Environmental Assessment were carried out.The procedure for obtaining the concession from the relevant canton ministry and consent from the •town of Posušje started.
WF BOROVA GLAVAThe measuring sensors were replaced at the site of the 50m high measuring mast. •The General Design for the 20/110 kV ST Jurina Glavica was prepared. •
HYDRO POWER PLANTS
PSPP VRILOThe design documents for preparation of the Preliminary Design for the PSPP •Vrilo (Construction Scope, Preliminary Design, Power Connection Study, En-vironmental Impact Assessment) were prepared and reviewed.The geodetic work was carried out at the upper basin site. •The hydrological analysis was made and the need for establishing •new hydrological stations (Kovači, Drina and Karlov Han) was con-firmed.
SHPP MIKRONOGEThe tender procedure for preparation of the Feasibility Study for the SHPP Mokronoge was carried •out and the preparation of the Feasibility Study was contracted.The Research Work Program, Study of Alternatives and Environmental Impact Assessment were •prepared.The tender procedure for implementation of the Research Work Program for the Feasibility •Study was carried out and the implementation of the Research Work Program was con-tracted. POWER GENERATION DIVISION
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HPP JAJcE II - PREPARATION OF THE DESIGN DOcUMENTS FOR REVITALIZATION OF THE GENERATING SETS , INcREASE OF THE DAM HEIGHT AND cONSTRUcTION OF A SMALL HYDRO POWER PLANT ON THE DIVERSION TUNNEL
21 studies with computer simulations and analyses were prepared and reviewed. •
FOSSIL ENERGY PROJECT
KONGORA LIGNITE MINE AND THERMAL POWER PLANTThe study • Activities on Preparation of Documents for Integrated Lignite Mining and Power Project was prepared.Preparation of the tender documents, carrying out of the tender procedure, monitoring of preparation of •the study Strategic Environmental AssessmentThe Inception Report for the • Strategic Environmental Assessment was prepared.
OTHER ACTIVITIESThe Catalog of Generating Plants of JP Elektroprivreda hrvatske zajednice Herceg-Bosne d.d. Mostar was •prepared.The Catalog of Power Facilities of JP Elektroprivreda hrvatske zajednice Herceg-Bosne d.d. Mostar was pre- •pared.The study Analysis of Wind Potential of Researched Wind Locations was prepared, JP Elektroprivreda hrvatske •zajednice Herceg-Bosne d.d. Mostar.Participation in monitoring of preparation of the study Vrbas Rver Basin Integrated Water-Energy Study (fi- •nanced by the World Bank)Carrying out of the tender procedure, monitoring of preparation of the study Techno Economic Analyses of In- •tegration of Wind Farms into Power system in Areas of Responsibility of JP Elektroprivreda HB HB d.d. MostarCarrying out of the tender procedure, monitoring of preparation of the study Gasification in Areas of Respon- •sibility of JP Elektroprivreda HB HB d.d. Mostar. Preparation of the Terms of Reference for the study Possibilities of Use of Solar Energy for Power Generation •The Study on Land-Slide Sites on the HPP Rama Reservoir Border was prepared. •The General Design for the office building in Tomislavgrad was prepared. •The Waste Management Plan for HPP Mostarsko Blato was prepared. •The Waste Management Plan during Construction of Flood Channel Jasenica – Neretva (HPP Mostarsko Blato) •was prepared.Participation in preparation and review of ISO procedures •
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POWER GENERATION DIVISION
Map of existing and planned generation facilities of JP EPHZHB
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POWER DISTRIBUTION DIVISION
POWER DISTRIBUTION DIVISION
The Power Distribution Division carries out the activities of power distribution to customers, regular mainte-nance (inspection, control and overhaul) of lines and facilities and investment maintenance of distribution lines and facilities, activities related to telecommunications and information system and other activities according to the Regulations of Internal Organization of JP Elektroprivreda HZ HB d.d. Mostar.
The main organizational parts of the Division are: Executive Director’s Office, Distribution Area Unit SOUTH, Distribution Area Unit CENTER and Distribution Area Unit NORTH.
This Division operates and maintains 11,431 km long 10, 20 and 0.4 kV distribution overhead and underground networks and a 295 km long 35 kV grid. The total installed power of the 35/10(20) kV substations is 85.5 MVA and of the 10(20)/0.4 kV substations is 1,017 kVA. All employees are responsible for quality power distribution to customers. On December 31, 2010, there were 889 employees.
The objective of this Division is continuous improvement of the distribution network and its operation through reconstruction and construction of facilities, and electrifica-tion of the areas of its responsibility. For this purpose, the amount of BAM 28M was invested in 2010.
All construction and reconstruction projects to the value of BAM 21 M financed out of the EBRD and EIB loans were completed.
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Distribution Facilities
DAU
Substations Lines
110/10(20) kV substations 35/10(20)kV substations 10(20)/0.4kV substations 35 kV MV lines 10(20)kV MV lines 0.4 kV LV lines
Number of substations
Installed power
Number of substations
Installed power
Number of substations
Installed power
Length of overhead lines
Length of underground
linesTotal length Length of overhead
lines
Length of underground
linesTotal length Length of
overhead lines
Length of underground
linesTotal length
(MVA) (MVA) (MVA) (km) (km) (km) (km) (km) (km) (km) (km) (km)1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
DAU South (EP’s property) 10 31 1.975 463.765 136,772 1,055 137,827 2.247,093 536,079 2.783,172 4.578,438 484,474 5.062,912
DAU South (third party’s property) 1 0 464 246.615 75,4 0 75,4 50,321 79,173 129,494 12,280 37,670 49,950
DAU South (EP’s +third party’s property) 0 0 1 400 0 0 0 0,000 0,00 0,000 0,000 0,000 0,000
DAU Center (EP’s property) 3 18,5 591 127.810 58,97 2,03 61 566,927 84,927 651,854 1.830,561 112,846 1.943,407
DAU Center (third party’s property) 0 0 147 96.650 0 0 0 17,510 28,59 46,100 14,615 9,137 23,752
DAU North (EP’s property) 3 36 242 62.600 20 1 21 221,950 48,09 270,040 441,220 23,150 464,370
DAU North (third party’s property) 0 0 52 19.730 0 0 0 0,000 5,78 5,780 0,000 0,000 0,000
TOTAL EP’S PROPERTY 16 85,5 2.808 654.175 215,742 4,085 219,827 3.035,970 669,096 3.705,066 6.850,219 620,470 7.470,689
TOTAL THIRD PARTY’S PROPERTY 1 0 663 362.995 75,4 0 75,4 67,831 113,543 181,374 26,895 46,807 73,702
TOTAL EP’s +THIRD PARTY’S PROPERTY 0 0 1 400 0 0 0 0,000 0,00 0,000 0,000 0,000 0,000
Grand total EP HZ HB 17 85,5 3.472 1.017.570 291,142 4,085 295,227 3.103,801 782,639 3.886,440 6.877,114 667,277 7.544,391
Mostar Unit Livno Unit Grude Unit DAU NORTH DAU cENTER
LV networks 19 18 22 14 17
LV cable networks 3 1 8 0 1
MV cables 13 5 9 4 3
10(20) kV lines 7 3 14 4 6
Tower-mounted substations
4 2 8 4 1
Concrete-housed substations
12 3 6 1 9
Switchgears 3 0 1 0 0
SECTOS* 2 4 4 0 0
Total 63 36 72 27 37 Grand total 235
*Remotely controlled switch
Distribution facilities financed out of EIB loan in 2010
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POWER DISTRIBUTION DIVISION
Distribution Facilities
DAU
Substations Lines
110/10(20) kV substations 35/10(20)kV substations 10(20)/0.4kV substations 35 kV MV lines 10(20)kV MV lines 0.4 kV LV lines
Number of substations
Installed power
Number of substations
Installed power
Number of substations
Installed power
Length of overhead lines
Length of underground
linesTotal length Length of overhead
lines
Length of underground
linesTotal length Length of
overhead lines
Length of underground
linesTotal length
(MVA) (MVA) (MVA) (km) (km) (km) (km) (km) (km) (km) (km) (km)1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
DAU South (EP’s property) 10 31 1.975 463.765 136,772 1,055 137,827 2.247,093 536,079 2.783,172 4.578,438 484,474 5.062,912
DAU South (third party’s property) 1 0 464 246.615 75,4 0 75,4 50,321 79,173 129,494 12,280 37,670 49,950
DAU South (EP’s +third party’s property) 0 0 1 400 0 0 0 0,000 0,00 0,000 0,000 0,000 0,000
DAU Center (EP’s property) 3 18,5 591 127.810 58,97 2,03 61 566,927 84,927 651,854 1.830,561 112,846 1.943,407
DAU Center (third party’s property) 0 0 147 96.650 0 0 0 17,510 28,59 46,100 14,615 9,137 23,752
DAU North (EP’s property) 3 36 242 62.600 20 1 21 221,950 48,09 270,040 441,220 23,150 464,370
DAU North (third party’s property) 0 0 52 19.730 0 0 0 0,000 5,78 5,780 0,000 0,000 0,000
TOTAL EP’S PROPERTY 16 85,5 2.808 654.175 215,742 4,085 219,827 3.035,970 669,096 3.705,066 6.850,219 620,470 7.470,689
TOTAL THIRD PARTY’S PROPERTY 1 0 663 362.995 75,4 0 75,4 67,831 113,543 181,374 26,895 46,807 73,702
TOTAL EP’s +THIRD PARTY’S PROPERTY 0 0 1 400 0 0 0 0,000 0,00 0,000 0,000 0,000 0,000
Grand total EP HZ HB 17 85,5 3.472 1.017.570 291,142 4,085 295,227 3.103,801 782,639 3.886,440 6.877,114 667,277 7.544,391
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Organizational partLosses 2007 – 2010 (%)
2007 2008 2009 2010 2010-2007
Mostar Unit 19,63 18,53 18,24 17,59 -2,04
Grude Unit 20,95 19,56 18,32 16,63 -4,32
Livno Unit 15,40 15,57 15,25 15,48 0,08
DAU Center 19,22 18,37 17,73 15,96 -3,26
DAU North 11,34 10,26 9,47 9,81 -1,53
Total 18,69 17,73 17,12 16,18 -2,51
TOTAL
DAU NORTH
DAU CENTER
LIVNO UNIT
GRUDE UNIT
MOSTAR UNIT0
5
10
15
20
25
2007 2008 2009 2010
Non-technical or commercial losses make the largest portion of the distribution network losses. These losses result from electricity thieving or non-recording through meters that are damaged or non-sealed.
Intensified efforts on theft prevention as well as other activities (reading, meter replacement, investment in the network) resulted in considerable loss reduction.
These results were achieved due to the following activities:Meter inspection. 49,832 meters were inspected and 417 customers thieved electricity. •Meter replacement. 17,308 meters were replaced. Most of them were electronic meters with remote •reading and monitoring.Meter relocation. Meters were relocated when customers thieved electricity and in transformer areas with •increased losses.
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In 2010, loss reduction was continued.
Organizational partLosses in 2010 (%)
Plan Realization Plan-Realization
DAU South 15,72 16,93 1,21
DAU Center 14,61 15,96 1,35
DAU North 9,45 9,81 0,36
Total 15,00 16,18 1,18
PLAN-REALIZATION
REALIZATION
PLAN
0
5
10
15
20
DAU SOUTH DAU CENTER DAU NORTH TotalPOWER DISTRIBUTION DIVISION
The above-mentioned activities were carried out after the following conditions were met:Procurement of 15,780 electronic meters with remote reading, monitoring and switching on/off, and •remote engaged power limiting for all customer classes (BAM 5.1M).Procurement of various polyester cubicles necessary for meter relocation (BAM 1.26M). •Implementation of the contract for performance of earth and civil works necessary for meter relocation. •
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2624 meters and 2442 modems for remote collection of the data on power consumption and other data were installed in the EP HZHB substations and the
project of installation of these devices was completed.We will keep on installing these meters in substations not owned by EP HZHB as
well as in the points of power exchange with other neighboring distribution compa-nies. This will enable us to have all data on power flows in the distribution system. The
collected data are stored in the database available to all relevant departments for review and processing.
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POWER SUPPLY DIVISION
POWER SUPPLY DIVISION
The Power Supply Division carries out the activities of power supply to tariff customers, data processing for power supply, settlement, billing and collection, and other activities according to the Regulations of Internal Organization of JP Elektroprivreda HZ HB d.d. Mostar.
The main organizational parts of the Division are: Executive Director’s Office, Customer Relations Unit, Supply Area Unit SOUTH, Supply Area Unit CENTER and Supply Area Unit NORTH.
In 2010, the Division provided all customers with a quality and reliable power supply service. All employ-ees are responsible for quality supply to customers. On December 31, 2010, there were 348 employees and 186,294 customers.
Number of customers by Supply Area Unit in 2010
Supply Area Unit SOUTH 121,118
Supply Area Unit CENTER 47,913
Supply Area Unit NORTH 17,263
Shares of Customers by Supply Area Unit (%)
SAU NORTH
SAU CENTER
SAU SOUTH
9%
26%65%
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Number of Customers by Class as of December 31, 2010:
class Number of customers
110 kV 3
35 kV 3
10(20)kV 140
Households 169,851
Other consumption 14,689
Street lighting 1,611
Total 186,297
Billed Electricity at Distribution Levels
10 kV
Other consumption
Households
Street lighting
35 kV
12.76%
62.18%
22.75%
1.87% 0.44%
Accepted Electricity by Supply Area Unit
SAU NORTH
SAU CENTER
SAU SOUTH
22%
7%
71%
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POWER SUPPLY DIVISION
PAYMENT cOLLEcTIONThe main activity of the Division is payment collection as one of the key indicators of the quality and efficiency of all business operations of JP Elektroprivreda HZ HB d.d. Mostar. In 2010, the global crisis was an additional burden in payment collection. In spite of this, thanks to taking a number of intensified actions as well as to making a maximum effort and cooperation between all employees of the Power Supply Division, the collection rate at the distribution levels was 98.73%.
collection Rate in 2010:
Supply Area Unit SOUTH 98.41
Supply Area Unit CENTER 99.06
Supply Area Unit NORTH 100.53
To avoid debt expiring, we brought a number of suits for debt. This was one of the extreme measures taken in payment collection.
Number of Suits Brought for Debt:
Supply Area Unit SOUTH 1,451
Supply Area Unit CENTER 400
Supply Area Unit NORTH 88
Total 1,939
RELATIONS WITH cUSTOMERSIn line with our business policy, customers are the center of our attention and the whole business strategy is adjusted to them. In 2010, we intensified and improved communication with customers by developing all types of support, primarily by improving the activities of informing customers and the quality of correspond-ence in writing and of electronic and telephone correspondence. Improvement of our relations with customers and timely informing; relations centralization; and more efficient, fast and professional communication with all types of support are implemented through the Customer Relations Unit. Its Information Center that will be put into operation very soon.
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Maximum and Minimum Hourly Loads by Month in 2010
Month I II III IV V VI VII VIII IX X XI XII
Max (MW) 358 357 364 327 323 311 330 347 37 383 378 440
Min (MW) 185 199 196 162 186 143 202 197 188 212 223 236
MW
Hours
500
450
400
350
300
250
200
150
1001 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
December 31, 2010
June 10, 2010
Daily Load Diagram
Daily Load Diagram
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
Max (MW) 315 285 279 276 276 284 314 346 380 387 391 385 361 386 391 395 419 440 440 434 412 385 367 349
Min (MW) 238 219 213 208 208 213 233 271 143 266 285 288 291 294 296 289 285 283 274 277 290 302 285 256
Maximum load – December 31, 2010 at 6 p.m. and 7 p.m.
Minimum load – June 10, 2010 at 9 a.m.
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POWER SUPPLY DIVISION
MW
Hours
500
450
400
350
300
250
200
150
1001 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
December 31, 2010
June 10, 2010
Daily Load Diagram
Delivered Electricity (MWh)
Customers at distribution levels
Customers at 110 kV
54%46%
Customers at distribution levels
Customers at 110 kV
Billed Electricity (BAM)
66%34%
Customers at distribution levels
Customers at 110 kV
Collected Electricity (BAM)
66%34%
Delivered, Billed and Collected Electricity, and Prices in 2010
ItemDelivered
electricity (MWh)Billed electricity
(BAM)collected
electricity (BAM)collection rate
(%)Selling electricity
price (pf/kWh)
customers at distribution levels
1.137.670 175.323.402 173.092.478 98,73 15,41
customers at 110 kV 962.314 90.793.903 90.862.057 100,08 9,43
Total 2.099.984 266.117.305 263.954.535 99,19 12,67
Selling Electricity Price (BAM)
20,00
15,00
10,00
5,00
0,00
Customers at distribution levels
Customers at 110 kV
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ENVIRONMENTAL PROTEcTION POLIcY
JP Elektroprivreda Hrvatske zajednice Herceg Bosne d.d. Mostar carries out all activities according to the princi-ples of sustainable development including responsible management, profitability, satisfaction of all interested parties and dynamic development that does not jeopardize environment.
The Company ‘s objective is achieving better results in environmental protection and it will take all available measures that will improve environmental protection in all organizational parts and activities. We will con-tinuously monitor the impacts of our actions on environment and review methods to reduce harmful impacts of these actions.
The environmental protection policy is based on principles of preventive actions and caution. These prin-ciples are as follows:
Compliance with legal provisions, standards and EU directives in the field of environmental protection, •Responsible behavior to environment through efficient implementation of the environmental protection •policy according to the principles of sustainable development,Development of consciousness of responsible behavior of all employees to environment, •Application of the best available technologies (clean, environment friendly technologies and materials), •Optimum or responsible and rational utilization of natural resources, •
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Priority and intensive use of renewable energy sources, •Permanent reduction, control and monitoring of emis- •sions to air, water and soil, noise reduction and preser-vation of biodiversity,Continuous assessment of risk and possible incident •impacts on environment, prevention and possible re-pair of the damage to protect the population and en-dangered environment,Inclusion of environmental protection requirements in •development plans and projects and inclusion of environ-mental protection criteria in decision making processes,Mitigation of harmfulness and decrease in quantity of •the produced waste, and proper waste management through its disposal and reuse,Reduction of energy losses in generation and the dis- •tribution network and promotion of energy efficiency with its customers,Informing the public about the environmental protec- •tion status in the Company through mass media and preparation of annual reports.
In accordance with the promoted principles of environmen-tal protection policy, employees will be educated and trained through the environmental protection program and encour-age them to work in an ecologically responsible manner. The existing system of environmental protection monitoring shall be maintained and improved, and clear objectives of environ-mental protection management shall be set. Communication with NGO-s taking care of environment and other interested parties shall be provided through informing and public con-sultations about individual projects. Suppliers, consulting and designing firms, and other cooperating firms shall implement an appropriate environmental protection policy.
The Management Board and General Manager are dedicat-ed to implementation of the environmental protection policy in JP Elektroprivreda HZHB d.d. Mostar.
ENVIRONMENTAL PROTECTION POLICY
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HYDROMETEOROLOGIcAL SYSTEMFollowing the global environmental protection principles and developing
consciousness of protection of water as one of the main links in power genera-tion, JP Elektroprivreda HZHB d.d. Mostar established the hydrometeorological
system for monitoring water quality and quantity in the flows in the areas of re-sponsibility of the Company as well as for monitoring weather-related parameters (air
temperature and humidity, rain amount, wind speed and direction) in the locations important for power generation and water supply to river basins. The system has been in operation since September 2004 when it was the only such
system in the greater area. All stations are automated and connected through the remote data-reporting system. The system consists of 28 hydrological and 8 meteorological stations. In the hydrological sta-
tions water quality and quantity are measured: water temperature, pH value, redox factor, melted oxygen, saturated oxygen, specific conductivity, nitrate, ammonia, turbidity and total melted gases.The stations are equipped with all devices necessary for independent operation, monitoring and
measuring parameters and with the remote data transmission system (through GSM signal) connected to its center in the headquarters in Mostar.
INFORMATION cENTERData are transmitted according to remote transmission requirements at regular intervals or at a call. A photovolt-
age system supplies the stations with clean energy. Its part is also the Hydras 3 software package, an application software for collection, processing and transmission of the measured values in the field of hydrology, meteorology
and environmental protection. The Hydras 3 has a high performance database that enables many functions.The stations and devices are maintained according to standards. These automated stations and hydrological informa-
tion system enable a simple and fast access to relevant data on qualitative and quantitative changes of water flows over time and space. This ensures more efficient operation and power generation optimization.
ENVIRONMENTAL PROTEcTION AcTIVITIESJP Elektroprivreda HZHB d.d. Mostar has been continuously implementing environmental protection measures according to the adopted Environmental Protection Policy. Each devel-
opment project of the Company starts with preparation of the Environmental Impact Study. We obtained environmental permits for all existing hydro power plants and the wind farm Mesi-
hovina under construction.The procedure of obtaining environmental permits for other planned facilities is carried out according to legal provisions. We regularly stock reservoirs and the Neretva
river with fish.
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ENVIRONMENTAL PROTECTION POLICY
Employees are regularly educated and trained for preparation and introduction of the environmental pro-tection system. Three employees acquired EOQ Certificates for EOQ Environmental Systems Manager.
Electronic and electric waste is disposed by the selected certified firm in accordance with the Waste Manage-ment Procedure adopted by the Management Board of JP Elektroprivreda HZHB d.d. Mostar. We also started activities on preparation of a Project Plan for Construction of Temporary Dangerous and Undangerous Waste Disposal Facilities in the Company.
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cONcLUSION
MANAGEMENT BOARD’S REPORT In 2010, the total power generation in the hydro power plants operated by our Company
was 2604.67 GWh or 115.91% of the plan.Power generation in all hydro power plants was higher than the plan due to very favourable
hydrological circumstances.The losses at the distribution levels (16.18%) were still higher than the plan (15%) but lower than
in the previous year (17.21%).We kept on inspecting meters and classifying customers by transformer area. All distribution units re-
located meters in transformer areas where big losses were noticed. There were activities on detection and categorization of possible meter faults that could increase total non-technical losses. In addition, we carried
out activities on the project of installation of remote reading meters. 22 additional residential buildings were prepared for remote reading. All three supply area units intensified their activities on payment collection resulting in the collection rate of 98.73%.
It was higher than the plan (97%). The Power Supply Division collected BAM 3.230.058 more than in 2009.The average price for customers at distribution levels was 15.41 pf/kWh. The number of suits for debt was significantly
reduced due to efforts and actions of the Company taken according to legal provisions. Achievement of this collection rate had a positive influence on the Company liquidity. All liquidity ratios – ratios of current liquidity, day-to-day liquidity, ac-
celerated liquidity and financial stability were within the scope of the plan and better than in the previous year .Compared to the revised investment plan for 2010 (BAM 82,140,088), the realized investment amounted to BAM 59,390,013
or 72.3%.As a result of good performance in 2010, the profitability ratios – gross profit margin, ROA (return on assets), ROE (return on equity),
ROI(return on investment), EBITDA (earnings before interest, taxes, depreciation and amortization) and EBIT (earnings before interest and taxes) were better than in the previous year.
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The investment indicators – labour productivity and EPS (earnings per share) were better than in 2009.The economic indicators - coefficients of economy of all business activities, operating and working factors, and the
coefficient of economy of financing were better than in 2009 and were at the level of reference.Taking into consideration the Company’s performance in 2010, the Management Board set the following tasks to
be carried out in the following period:Launching development projects in accordance with the decisions of the Company’s owner1. Electricity loss minimization2. Keeping the achieved collection rate3. Control of operating expenses to minimize them in all business activities4. Safe, reliable and quality supply to customers at all voltage levels5. Successful human resources management in the Company6.
SUPERVISORY BOARD’S EVALUATION OF cOMPANY’S PERFORMANcE At the meeting held on February 25, 2011, the Supervisory Board unanimously adopted the 2010 Business Report of JP Elektroprivreda HZ HB d.d.
The Supervisory Board expressed satisfaction with the good Company’s performance and concluded that it was not only a result of favourable hydrological circumstances but also of good management of the Company that became one of the best companies in the public sector in this region. Having in mind a difficult economic situation, all employees have to be dedicated to work, carry out all tasks set by the Management Board and try to achieve even better results in the following period.
CONCLUSION
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ASSEMBLY’S EVALUATION OF PERFORMANcE At the 12th meeting held on June 28, 2011, the Shareholders’ Assembly of JP Elektroprivreda
HZ HB d.d. Mostar unanimously adopted the 2010 Company Business Report that includes the financial statements and reports of the Independent Auditor, Supervisory Board and Audit Board. The Assembly made the decision on distribution of profits of JP Elektroprivreda HZ HB d.d. Mostar
for 2010 according to the directives of the Government of BiH Federation given to representatives of the state capital in bodies of public companies.The shareholders will be paid the dividends amounting to 40% of the profit or BAM 15,998,605.92
since the profit of JP Elektroprivreda HZ HB d.d. Mostar in 2009 was BAM 40,746,514.79.The determined dividend value per share was BAM 2.17. The
above-mentioned decision also includes providing funds for legal reserves and donations in 2011.The Assembly’s members expressed their satisfaction with the Com-
pany’s performance that was very good. They supported the Management Board of the Company that is determined to keep on implementing a success-
ful business policy.The Assembly also made the decision on additional home trade activities and
on adjustment of activities to the Decision on Activity Classification in BiH, and the decision on amending the Articles of Association of JP Elektroprivreda HZ HB d.d. Mostar.
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